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Saturday, 8 September 2012

Do as I say, not as I do

So Labour came out with their idea for the pre-distribution of wealth.  Chuck-us-ya-money, the Labour Shadow Business person explained it on the radio this morning.  The big idea is to get people earning more by restructuring the economy so that there are more high value jobs in industry.

Like duh! That is exactly what the rest of the world have been 5trying to do for the last 100 years, while Labour have been undermining industrial evolution for the sake of their vested interests.  Worse than that, from 1997 to 2010, the proportion of GDP represented by industry fell from around 22% to 11%. Under Thatcher it fell from 25% to 23% and under Major from 23 to 21%, but under Blair and Brown it really fell off a cliff (or rather it stagnated while the rest of the economy became bloated on government borrowing).

To put the causes in perspective, remember that it was the Labour government that dropped the rate of corporation tax from 30% to 28% (sounds like a good thing), but then announced that the entire measure 2would be funded by reducing the rate of writing down allowances from 25% to 20%.  So in other words, the amount of corporation tax stayed the same, and while all the advertising, PR, film and TV production companies paid a lower rate of tax, the bill for doing so was picked up by the people who spend a lot of money on plant and machinery - i.e. industry.  Which is one reason (amongst a host of similar why industry will never grow under Labour).

So why vote Labour when you can vote for the real thing

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